Organizational Preferences and Producer Characteristics in Biomass Supply Chains

Organizational costs in biomass transactions could be a key barrier to commercial development of cellulosic-based industries and will influence the organizational choices of biomass producers and bioenergy processors. Understanding biomass producer characteristics and preferences will be important to the future development of renewable industries like cellulosic ethanol. This paper examines survey data that identify assets biomass producers currently own, services they are willing to provide, and their preferences for selling mechanisms. A transaction cost model is used to analyze producers’ organizational preferences in a multinomial logit empirical framework.